08:19 AM EDT, 09/27/2024 (MT Newswires) -- Bumble (BMBL) shares fell almost 3% in recent premarket trading Friday after KeyBanc downgraded the company's stock to sector weight.

KeyBanc said Bumble's app data shows continued weakness, with global downloads remaining flat year-over-year and US downloads declining by double-digits.

KeyBanc also noted that Bumble's recent app refresh, specifically the "Opening Moves" feature has made Bumble less distinct from competitors and increased risk to the brand's 2025 financial outlook.

KeyBanc said Bumble's revenue and EBITDA estimates for 2025 may be "overly optimistic", as the company faces headwinds in achieving growth by Q3 2025.

While shares have risen over 12% since the Q2 earnings report, KeyBanc believes that the stock's risk/reward profile is now balanced and that there is elevated risk to 2025 estimates.

KeyBanc said Bumble could become an acquisition target, however, regulatory hurdles could arise if Match Group were to pursue Bumble due to industry consolidation concerns. KeyBanc said if Bumble's user engagement issues are more transitory and users adapt positively to the changes, there could be an upside to current estimates.

Price: 6.25, Change: -0.19, Percent Change: -2.91